What clients want from a Prime of Prime

Posted by Natallia Hunik on Nov 4, 2016 1:44:45 PM

Prime of Prime in FX, has undergone a lot of changes in the past few years, yet it remains one of the most highly demanded services in today’s marketplace. Prime of Prime’s role is to extend interbank market access to clients who do not have access to credit. To put it another way, it helps create direct market access for those clients who do not meet the stringent collateral and credit criteria that’s needed in order for them to establish their own, direct, prime broker relationship with a bank. The main value that a real Prime of Prime delivers is non-latent access to institutional trading, in a secure and regulated environment.

Read More

Topics: Prime of Prime

Wind of Change? What the new CySEC rules mean to the FX industry

Posted by Advanced Markets Team on Aug 16, 2016 11:24:43 PM

CySec’s strategic move capitalizes on a potential shift in the global FX landscape.

As someone who is very passionate about FX and football, I’m always keen to draw parallels between both whenever possible.

Where football and, indeed, sport in general is concerned, 2016 will forever be remembered as “the year of the underdog”

Read More

Topics: Licensing, Regulation, Brokerage

5 reasons to trade with Advanced Markets

Posted by Advanced Markets Team on Jul 7, 2016 3:37:00 PM

Here are the Top 5 reasons why you should consider opening Live Account with Advanced Markets. 

1. Save money and time by dealing with real 100% STP Liquidity Provider - Finding a reputable prime broker that also offers quality institutional liquidity and transparent execution can be a challenging task. ASIC registered and licensed Advanced Markets Ltd. offers Prime of Prime (PoP) brokerage services and ECN model where aggregated institutional liquidity derives from Tier 1 banks and major non-bank sources. 

Read More

Topics: FX Liquidity

Survival Guide for Brexit

Posted by Richard Perona on Jun 24, 2016 11:37:22 AM

Major market events are generally accompanied by periods of massive uncertainty, volatility and downright fear. It doesn’t matter whether these events are expected, like the Brexit vote, or unexpected like the SNB move last year, the outcome is the same. Many market participants have a few options on how to survive the dislocation. Fear of the unknown creeps into every financial exchange, instability reigns and price action is violent. These events has the potential to affect every trader, brokerage and bank for days, weeks and even years depending upon their severity and the resulting market fallout. Below, I will outline a few possible risk/reward strategies along with how to attempt to control the uncontrollable.

Read More

Topics: Industry Trends, Thought Leadership, Forex Brokerage

Which is better for Block Trading: an ECN or a True Prime of Prime?

Posted by Richard Perona on Jun 9, 2016 8:47:31 AM

I should start by saying that this article may not be applicable to many market participants, but hopefully the information will be useful when for anyone looking to execute large market orders. 

If you are an Institutional Trader, a Fund Manager, a Bank or, perhaps, a brokerage hedging positions, then you will almost certainly know that the job of executing a 20, 50 or 100 million trade can be

Read More

Topics: Prime of Prime

Tips to increase client conversions in FX B2B

Posted by Natallia Hunik on Jun 1, 2016 3:28:00 PM

Throughout my career I have encountered many different sales personalities. Each of them had their own network, their own approach to dealing with prospects, their own strategic vision and their own way of handling the sales process. However, just ask any sales manager and most will agree that the majority of sales people could be categorized as “openers”, rather than “closers”.

Read More

Topics: Thought Leadership, Forex B2B

What no one is Telling You about FX Margin Aggregation

Posted by Natallia Hunik on Apr 27, 2016 4:34:15 PM

Margin aggregation has become a popular topic amongst retail FX brokers recently with many having lost their Prime Broker relationships and with the squeeze on credit conditions.

Read More

Topics: FX Liquidity, Prime of Prime

Why your FX brokerage's cost for top Google keywords has gotten out of control?

Posted by Natallia Hunik on Feb 29, 2016 2:22:00 PM

When most FX marketers opened their Google AdWords (Google’s keyword advertising program) account last week they might have had a jaw-dropping experience. The cost per click (CPC) for the most searchable FX keywords went up significantly and, in some cases, doubled. The first reaction most likely was “is it competition?” However, there is actually a fairly reasonable explanation for this price hike, and it has to do with how Google has altered its website advertising in general.

Read More

Topics: Forex Brokerage, SYOB, FX Broker Startup

What is toxic FX flow?

Posted by Anya Aratovskaya on Feb 10, 2016 8:43:00 AM

Technology is certainly at the heart of the FX Business, and, nowadays, has a role to play in dictating the rules of the game. The term “toxic FX flow” often has a direct relationship to the technology behind the liquidity.

What is toxic flow in FX anyway? 

Read More

Topics: Traders

Why Gold Should Shine Brighter at Your Brokerage or Fund Manager

Posted by Richard Perona on Jan 20, 2016 2:25:00 PM

More times than not, an interested client inquiring about liquidity will ask the quintessential question, “What is Advanced Markets’ spread in EURUSD?” My standard, truthful response is always that, “the spread is dependent upon market conditions, as Advanced Markets is a true STP Prime of Prime and only provides aggregated liquidity from top tier, global banks.  With that being said, EURUSD spread should normally sit within an average range of 0.3-0.5 given our ability to provide very deep liquidity due to our favorable bank relations”.  Generally, when someone asks me this question, I will always follow up by mentioning our GOLD offering.  In my opinion, Gold has the potential to offer a prospective brokerage (or Fund Manager) more than the EURUSD spread can when looking at future revenues.  Many people look at the EURUSD first due to the fact that many brokers aggressively market their “tight” EURUSD spread in order to attract clients and get them in the door. Once they have them in, however, they tend to pile on the mark-ups across the other pairs in their offering.

Read More

Topics: Thought Leadership, Brokerage, Gold

4 FX Predictions for the Year of 2016

Posted by Natallia Hunik on Jan 7, 2016 2:41:00 PM

2015 has now wrapped up, and it is time to reflect on the year passed.

The year of 2015 will be remembered by the FX industry for so many different reasons. In the aftermath of the SNB rate decision, many brokerages had no option but to re-evaluate their business models, their risk management practices and, to tighten their belts.

Read More

Topics: Platforms & Technology, Thought Leadership

Setting Up an office for your FX Brokerage

Posted by Shobin Mathew Simon on Jan 5, 2016 9:03:00 AM

When someone starts thinking about opening a Forex brokerage their mind immediately fills with question after question. Which regulatory jurisdiction should I choose? How much capital do I need? What kind of license do I need? How do I get pricing? Where do I base the operation? The “office” / location question is usually the last that comes to mind but the choices made here can determine whether a business succeeds or fails. The following 5 points are therefore worth considering before making any decisions on your brokerage startup: 

Read More

Topics: SYOB, Brokerage, FX Broker Startup, Start Your Own Forex Brokerage

Can a “true” STP Broker offer 500:1 Leverage?

Posted by Shobin Mathew Simon on Dec 7, 2015 10:01:00 AM

The ability to trade using leverage is one of the key advantages associated with “retail” forex trading. This unique factor tends to attract more investors to forex, rather than to equities or other financial instruments, as there is the perceived opportunity to generate profits with little money down.

Read More

Topics: Forex Brokerage

How to Avoid Repeating the Missteps of 2015

Posted by Richard Perona on Dec 3, 2015 9:30:00 AM

This article originally appeared on Finance Magnates.

I have worked in the FX industry for the past 16 years but I believe that 2015 will stand out most as the year when the market was taught a very valuable lesson. When I look back upon this year, I can’t help feeling that, by applying a simple life principle, many of 2015’s pitfalls might have been avoided.

Read More

Topics: Thought Leadership

Trading via FIX API

Posted by Anya Aratovskaya on Nov 23, 2015 5:21:00 PM

FIX (Financial Information Exchange) API (application programming interface) is a highly scalable electronic communication protocol to facilitate the real-time exchange of information related to financial markets. It has become the de facto standard method of pre-trade, trade and post-trade communication. Market participants including banks, hedge funds, prime brokers and “prime of primes” utilize FIX for their own trading needs or to connect directly to clients.

To give you an indication as to how popular FIX is: the FIX Trader Community has around 110 000 registered members and 275 corporate members (including Goldman Sachs, Barclays, Morgan Stanley and so on).

Read More

Topics: Thought Leadership, FX Liquidity Provider, FX Technology Provider, Institutional Broker, Institutional Trader, FIX API, Forex B2B, FX Broker Startup, Start Your Own Forex Brokerage, SYOB, Platforms & Technology

Understanding the difference between FX industry events

Posted by Katya Samardina on Nov 17, 2015 4:05:00 PM

Having just returned from the recent B2B Expo in London and the Money Fair in Shanghai we are now looking back and are discussing the merits of attending these B2B and B2C FX industry events. Unless your budget allows you the freedom to attend all events, it’s prudent to prioritize and to choose those that will best benefit your business.

Read More

Topics: Thought Leadership

Efficiently Sourcing FX Block-Trade Liquidity without Information Leakage or Market Impact

Posted by Anthony Brocco on Nov 16, 2015 9:51:33 AM

New electronic solutions for FX block trading are emerging as this last bastion of voice trading is being reshaped by increased regulatory capital requirements, tighter internal credit standards and fallout from the fixing quagmire.

This article discusses the Full Order Execution (FOX) block trading mechanism offered by Advanced Markets, which operates a low latency, direct market access (DMA) liquidity pool in which liquidity is streamed by 10 leading FX banks.

Read More

Topics: Thought Leadership, Block Trading, Institutional Broker, Institutional Trader, Retail Broker, Retail Trader, Wholesale FX, Industry Trends

Choosing a Suitable Regulatory Jurisdiction for an FX Broker Start-Up

Posted by Anya Aratovskaya on Nov 9, 2015 3:02:00 PM

The world of online Retail FX has become increasingly competitive and congested but, regardless, the industry remains extremely attractive to investors, insiders and entrepreneurs alike. One key factor adding to the attraction is the ease by which a person can actually start their own brokerage. In past years, starting a brokerage normally required expert technology and market knowledge combined with a significant amount of free capital but today, advances in technology and an increase in the options available for regulatory licenses have greatly reduced the cost and the “time-to-market”.

Read More

Topics: Start Your Own Forex Brokerage, Brokerage, SYOB, FX Broker Startup

10 Things You May Be Missing When Selecting Your Liquidity Partner

Posted by Natallia Hunik on Oct 14, 2015 12:14:00 PM

I, along with my institutional FX Team at Advanced Markets and Fortex, am dealing with FX brokers who may be in search of liquidity, technology solutions of all kinds, infrastructure enhancements or sometimes just a price feed that is stable and reliable on a daily basis. We have seen it all from novice brokers that need everything explained from A to Z, medium-sized price-conscious brokers that are trying to bypass pre-qualifications and over-state their volume figures to get better deals to larger brokers asking us to fill out  lengthy RFPs (Request for Proposal)  while the work on selecting a new liquidity partner

Read More

Topics: FX Liquidity, FX Liquidity Provider, Institutional Broker, Institutional Trader, Retail Broker, Retail Trader, FX Broker Startup, Start Your Own Forex Brokerage, SYOB, Brokerage

LFSA Malaysia is gaining its footage in Asia a leading FX regulatory Authority

Posted by Shobin Mathew Simon on Sep 29, 2015 4:27:00 PM

A money broking license offered by the LFSA (Labuan Financial Services) Malaysia, is fast becoming a sought after license in the Asian region. LFSA, which is an offshore financial regulatory authority for Malaysia, has been in operation since 1996. The region includes over 6500 offshore companies and more than 300 licensed financial institutions including some of the world’s leading banks.

Read More

Topics: Forex Brokerage

Is it really Prime of Prime? Keys to Understanding.

Posted by Anya Aratovskaya on Sep 15, 2015 11:00:00 AM

As a VP of sales, I have noticed that during many of my conversations lately I am helping brokers and fund managers identify the most appropriate trading venue to serve the needs of their respective businesses. This has become a very hot topic after the January 2015 Swiss event as the major Tier 1 Prime Brokerages have raised capital requirements, introduced tighter onboarding processes and, in many cases, revised their pricing models in order to mitigate the risks associated with FX prime brokerage.
In order to help ease the process of selecting the right partner I will briefly describe the 3 most popular options available for retail FX brokers, asset managers and corporates and point out each of their pros and cons.

Read More

Topics: Prime of Prime

6 Points to Consider Before Starting Your Own Forex Brokerage

Posted by Shobin Mathew Simon on Aug 20, 2015 9:41:00 AM
The foreign exchange (FX) market now generates more than $5 trillion a day, making it the largest market in the world from a volume standpoint, surpassing any other market in the world.*
Over the past few years the opportunities and successes in the foreign exchange market have attracted a significant number of investors and traders. The growth in the number of Forex brokers during this time is attributable to the fact that they have realized the tremendous revenue opportunity that is there for them when they own a brokerage rather than simply introducing clients. The increased number of start-up Forex brokers over the last decade is evidence that more and more FX entrepreneurs are finding it more profitable to run their own businesses rather than continuing to funnel business to larger brokers via traditional IB arrangements.
Read More

Topics: Forex Brokerage, Start Your Own Forex Brokerage, FX Broker Startup, FX Jurisdictions, FX Liquidity Provider, FX Technology Provider, Institutional Broker, Institutional Trader, SYOB

Ready to Start Your Own Brokerage Firm?

Posted by Advanced Markets Team on Jul 7, 2015 4:12:00 PM

The FX market presents tremendous opportunities for entrepreneurs looking to enter the largest financial market in the world with daily trading turnover of 5.3 trillion.*

Advanced Markets and Fortex are pleased to announce their Start Your Own Brokerage program that includes a number of packages with different service bundles to accommodate any business model.

Read More

Topics: Forex Brokerage

4 Ways to Verify That You Are Working with a Prime of Prime (PoP)

Posted by Richard Perona on Jun 30, 2015 7:22:00 AM

Over the past few years the traditional FX Prime Broker industry has been thinning out, creating a demand for the types of services they provided. The loss of the institutional big bank Prime Brokerage services has occurred due to credit risk, small profit margin, risk aversion and new regulation. This reaction by those larger prime brokers has been clearing the way for specialized FX Prime of Prime (PoP) firms to gain market share. A Prime of Prime brokerage is a one stop shop for retail brokerages, hedge funds, money managers and wholesale traders to access top tiered global bank liquidity, cutting edge technology, cost effective rollover rates and clearing services.

Read More

Topics: Thought Leadership, Forex Brokerage, Prime of Prime, FX Liquidity Provider, Institutional Broker, Institutional Trader, Brokerage, Traders

How to Safeguard Your Forex Funds Against Brokerage Bankruptcy

Posted by Richard Perona on May 5, 2015 9:52:00 AM

On January 15, 2015, the SNB (Swiss National Bank) caused a massive upheaval in the FX industry when they manipulated the exchange rate of the franc and unpegged their currency against the euro.
This action threw the markets into complete panic, ultimately producing capitulation with the CHF pairs and creating catastrophic losses throughout the industry. Market participants were affected across the entire spectrum, all the way from the top tiered global banks down to individual investors.
The large banks and market makers were able to absorb the losses (or major gains if B Book), but the smaller, more vulnerable, participants could not.
Some brokerages were forced to close their doors due to negative balances as a result of the losses sustained from their client’s positions. A multitude of firms such as Alpari UK, Boston Prime, Excel Markets and Liquid Markets became insolvent, just to name a few.

Read More

Topics: Thought Leadership, Forex Brokerage, Institutional Broker, Institutional Trader, Retail Broker, Retail Trader, Forex B2B, FX Broker Startup, Start Your Own Forex Brokerage, SYOB, Brokerage, Traders

Meet the Experts

Posted by Advanced Markets Team on Apr 23, 2015 1:43:00 PM

Our team has a combined 100 years plus experience in institutional FX and prime brokerage fields. We use that experience and proven insights to work with FX brokerages and asset managers to enhance their offerings and achieve better operational efficiencies. At Advanced Markets and Fortex our focus will remain on helping you to solve complex problems and grow your business by leveraging superior Fortex technology and best of breed liquidity from Advanced Markets.

Read More

Topics: Company, Thought Leadership, Prime of Prime, Traders, Brokerage